Fraud against bank is offence against society, says top court

Offences related to banking activities are not only confined to banks but have a harmful impact on their customers and society at large, the Supreme Court has said while asking courts not to show leniency to the accused in such cases.

A bench of justices SJ Mukhopadhaya and Ranjan Gogoi said such offences involve moral turpitude and the accused should not be let off after refunding the money taken from the bank fraudulently.

‘The offences when committed in relation with banking activities including offences under Sections 420 (cheating), 471 (using forged document) have harmful effect on the public and threaten the well-being of the society. These offences fall under the category of offences involving moral turpitude committed by public servants while working in that capacity.

‘Prima facie, one may state that the bank as the victim in such cases but, in fact, the society in general, including customers of the bank is the sufferer,’ the bench said.

It set aside the Calcutta high court order which had quashed the criminal proceedings against a bank employee and a private person after they refunded the amount to bank.

‘We set aside the impugned judgement and order dated 31 March2010 passed by the high court and direct the trial court to proceed the matter in accordance with law and to conclude the trial expeditiously,’ the bench said.